In preparing its budget for July 2026, Robinson Company has the following accounts receivable information available: Accounts receivable at June 30, 2026 P 350,000 Estimated credit sales for July 400,000 Estimated collections in July for credit sales in July and prior years. 320,000 Estimated write-off in July for uncollectible credit sales. 16,000 Estimated provision or doubtful accounts for credit sales in July 12,000 What is the projected balance of accounts receivable at July 31, 2026?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
In preparing its budget for July 2026, Robinson Company has the following accounts receivable information available:
|
Accounts receivable at June 30, 2026 |
P 350,000 |
|
Estimated credit sales for July |
400,000 |
|
Estimated collections in July for credit sales in July and prior years. |
320,000 |
|
Estimated write-off in July for uncollectible credit sales. |
16,000 |
|
Estimated provision or doubtful accounts for credit sales in July |
12,000 |
What is the projected balance of accounts receivable at July 31, 2026?
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